Gigaba confirms fresh delay to R23bn pipeline project
Public Enterprises Minister Malusi Gigaba on Thursday confirmed that the second phase of the Transnet New Multi-Product Pipeline (NMPP) would miss its December 2013 completion date, putting the R23.4-billion project further behind schedule.
Gigaba said that the project schedule was being revised, after experiencing delays in the construction of the coastal terminal, or terminal 1, at Island View, in Durban, owing to “intense and prolonged rain and wind”, which had been classified as an “once in 30 year weather event”.
The second phase, which also includes the inland terminal, or terminal 2, at Jameson Park, near Heidelberg, will now only be completed in 2014, the Minister said, despite giving his assurance last year that the second phase would be commissioned on time and within budget.
The first phase of the NMPP was completed in January 2012 with the commissioning of the 555 km trunk line between Durban and Jameson Park, and three pump stations, situated at Tweni, in Durban, Hilltop, near Pietermartizburg, and Mnambithi, near Ladysmith. Three inland pipelines were commissioned in May 2011.
The NMPP project cost to date was R19.3-billion, with another R4-billion still expected to be incurred. “These costs are still forecast not to exceed the project’s budget of R23.4-billion,” Gigaba stressed.
The new pipeline is replacing the 45-year-old Durban-Johannesburg pipeline, which is nearing the end of its design life and capacity. It was initially forecast to cost R12.7-billion, but the budget later rose to R15.4-billion and eventually R23.4-billion, prompting the National Energy Regulator of South Africa (Nersa) to launch an investigation into the cost overruns.
According to financial daily Business Day, Nersa had assigned an independent expert, Cresco Project Finance, to conduct a "prudency review" of the project’s first phase, which could have implications for future petroleum pipeline tariff hike requests from Transnet.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Showroom
ATI systems comprises five divisions: electrical assemblies, drives and controls, feedback sensors, enclosures, and strip guiding.
VISIT SHOWROOM
Your global lifecycle technology & service partner for materials & minerals processing equipment for coal, iron ore, copper, manganese & other...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
